Garibaldi Resources Corp.
TSX VENTURE : GGI

Garibaldi Resources Corp.

January 26, 2006 09:00 ET

Garibaldi Resources Corp.: Closing of Morelos Property Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2006) - Garibaldi Resources Corp. (the "Company") (TSX VENTURE:GGI) is pleased to announce that, pursuant to its option agreement with Minera Cima S.A. de C.V. ("Minera Cima") of Torre Palmas, Mexico, with respect to earning a 100% right, title and interest in the Morelos Property comprising approximately 36,844 hectares situated approximately 30 kilometres southwest of Glamis Gold's El Sauzal Deposit in the State of Chihuahua, Mexico, subject to a 2% net smelter return royalty reserved in favour of the vendor, the Company has completed its acquisition of the Option through the payment of US$25,000 in cash to Minera Cima and having received acceptance for filing of the option from the TSX Venture Exchange (the "Exchange").

To maintain the Option in good standing, the Company must issue US$450,000 in securities to Minera Cima in nine tranches over four years. According to the terms of the Option Agreement, two tranches of these securities have been issued to date. The first tranche of 241,160 shares and 138,840 warrants to acquire one additional share at a price of $0.25 for two years were subject to restrictions from trading until January 22, 2006. The warrants expire on September 22, 2007. The second tranche of 229,784 shares and 132,126 warrants to acquire one additional share at a price of $0.255 for two years are restricted from trading until February 28, 2006. The warrants expire October 27, 2007. Each tranche is for US$50,000 in securities of the Company with the number of shares to be issued determined by the market price of the Company's shares at the time. In addition to the payment in securities, the Company must pay the taxes and work requirements specified by the government of Mexico with respect to the Concessions for the term of the Option. Upon earning the Option, the Company can acquire the Concessions by paying Minera Cima a one-time payment of US$2,000,000.

In conjunction with the acquisition of the Option, the Company has paid a finder's fee to Ram Exploration Ltd., of Vancouver, consisting of 178,125 common shares of the Company. The shares are subject to restrictions from trading until May 24, 2006.

As part of its review of the filing, the Exchange also reviewed and accepted for filing, the technical report on the Property on Form 43-101 that Imdex, Inc. prepared for the Company. The Report is available for review under the heading Technical Reports under the Company's disclosure on the SEDAR system at www.sedar.com.

GARIBALDI RESOURCES CORP.

Steve Regoci, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Contact Information

  • Garibaldi Resources Corp.
    Steve Regoci
    President
    (604) 482-8828
    (604) 488-8871 (FAX)